“If you think your rates are too high, shop around,” he said in a presentation to members gathered at Envie Restaurant in Thibodaux. “Get an independent agent.”

Since Hurricane Katrina, Louisiana residents, particularly those in coastal parishes like Terrebonne and Lafourche, have had difficulty finding affordable homeowners’ insurance because of the mass storm damage incurred in the region. Homeowners have seen premiums double or triple.

Louisiana Citizens, a state insurer that provides policies to homeowners deemed too risky to be covered by private companies, swelled to 170,000 policies after Hurricane Katrina.

Since then, Donelon said, 40,000 Citizen policies reverted to the private market, thanks to incentives drawing new companies to the state.

By law, Citizens also charges higher rates than private-market policies, which Donelon says has added to the competitive advantage.

But in places like Terrebonne and Lafourche, high rates become a financial hardship for those who can’t get coverage elsewhere. Rates went up by as much as 33 percent in the two parishes in 2008 and are expected to increase by up to 10 percent this year.

The prices charged can seem arbitrary and “need to be evaluated,” said Woody Falgout, a Thibodaux attorney.

Companies also are permitted to charge deductibles of up to 2 percent of a home’s value for named storms, meaning homeowners can incur thousands of dollars in damage before coverage even kicks in.

That was a concern raised by attorney Richard Bouterie, who oversees home closings as part of his Thibodaux-based business. It’s a particular hardship for first-time homebuyers who may pay thousands in premiums but could also incur thousands in roof damage without seeing a dime, he said.

Other areas of insurance coverage could use improvement in terms of competitiveness, Donelon said, including health-care coverage. BlueCross BlueShield of Louisiana covers about 60 percent of people with health insurance in the state, a situation he called “dangerous.”

Carriers like United Health Care and Vantage Health Plan will help keep prices down for consumers, he said.

As for auto coverage, lax police enforcement has kept prices high as uninsured drivers continue to cause damage, he said.

<p>HOUMA — Though Louisianians may pay more than other Americans for certain types of insurance, a state official on Tuesday urged consumers to be proactive about their choices.</p><p>Louisiana residents have the nation's third-highest rates for homeowners' insurance and second-highest rates for automobile coverage, Insurance Commissioner Jim Donelon told a meeting of a Thibodaux Rotary Club.</p><p>“If you think your rates are too high, shop around,” he said in a presentation to members gathered at Envie Restaurant in Thibodaux. “Get an independent agent.”</p><p>Since Hurricane Katrina, Louisiana residents, particularly those in coastal parishes like Terrebonne and Lafourche, have had difficulty finding affordable homeowners' insurance because of the mass storm damage incurred in the region. Homeowners have seen premiums double or triple.</p><p>Louisiana Citizens, a state insurer that provides policies to homeowners deemed too risky to be covered by private companies, swelled to 170,000 policies after Hurricane Katrina.</p><p>Since then, Donelon said, 40,000 Citizen policies reverted to the private market, thanks to incentives drawing new companies to the state.</p><p>By law, Citizens also charges higher rates than private-market policies, which Donelon says has added to the competitive advantage.</p><p>But in places like Terrebonne and Lafourche, high rates become a financial hardship for those who can't get coverage elsewhere. Rates went up by as much as 33 percent in the two parishes in 2008 and are expected to increase by up to 10 percent this year.</p><p>The prices charged can seem arbitrary and “need to be evaluated,” said Woody Falgout, a Thibodaux attorney.</p><p>Companies also are permitted to charge deductibles of up to 2 percent of a home's value for named storms, meaning homeowners can incur thousands of dollars in damage before coverage even kicks in.</p><p>That was a concern raised by attorney Richard Bouterie, who oversees home closings as part of his Thibodaux-based business. It's a particular hardship for first-time homebuyers who may pay thousands in premiums but could also incur thousands in roof damage without seeing a dime, he said.</p><p>Other areas of insurance coverage could use improvement in terms of competitiveness, Donelon said, including health-care coverage. BlueCross BlueShield of Louisiana covers about 60 percent of people with health insurance in the state, a situation he called “dangerous.”</p><p>Carriers like United Health Care and Vantage Health Plan will help keep prices down for consumers, he said.</p><p>As for auto coverage, lax police enforcement has kept prices high as uninsured drivers continue to cause damage, he said.</p><p>Staff Writer Kathrine Schmidt can be reached at 857-2204 or </p><p>kathrine.schmidt@houmatoday.com.</p>